Risk Management Dean Fenton Risk and Regulation Manager Children and Young People’s Services

Effective risk management ?

What is a risk ? The likelihood of something happening and the severity of it’s consequences. eg: Could it happen and would it hurt. eg: The effect of uncertainty on our objectives

History of the emergence of Risk Management Over the years there have been several high profile corporate failures and disasters such as: Corporate failures eg Baby P and Victoria Climbe Financial Failures eg Lehmen Brothers, HBOS, Icelandic Bank Major safety disasters eg Hillsborough, Herald of Free Enterprise, Bradford fire Threats to business continuity eg Adverse weather, Passport Agency Delays Severe reputational damage …………………….

Who could forget Gerald Ratner: It was supposed to be one of the greatest days of his life - the then 41-year-old north Londoner, who'd left school with no qualifications and had worked in the family business for 20 years, was addressing 5,000 members of the Institute of Directors at the Royal Albert Hall. All of them there, just to listen to his pearls of wisdom. He showed the speech to one of his own directors. Not bad, he said, but why no jokes? So he reinstated a joke or two:

Gerald Ratner continued: "We do cut-glass sherry decanters complete with six glasses on a silver-plated tray your butler can serve you drinks on, all for £4.95. People say how can you sell this for such a low price? I say because it’s total c**p." Then another: "We even sell a pair of gold earrings for under £1, which is cheaper than a prawn sandwich from Marks & Spencer. But I have to say that the sandwich will probably last longer than the earrings." Boom boom! Two jokes……. And his world fell apart.

What is risk management ? Risk Management is NOT about eliminating all risks Risk Management IS about gaining a better understanding of the nature, scale and potential effects And then Taking action to reduce or mitigate threats and maximise opportunities

Why do we need to manage risks ? Risk Management protects and adds value to the organisation and it’s stakeholders through supporting the organisation’s objectives. It should be about the management, not avoidance of risk It should help to prioritise work in a fast moving context RISK MANAGEMENT NEEDS TO BECOME A STYLE OF THOUGHT, AND SHOULD DEFINITELY NOT BE A MERE PAPER CHASE

How are risks managed in RMBC ? Appointed Strategic and Operational Risk Champions in each Directorate: Communication and consultation Establishing the context (Corporate plan, Children and Young People’s Plan etc) Assessing and treating the risk (Assessing and recording risks and mitigating actions on the Councils ‘JCad risk’ monitoring and reporting system, Risk Assessments, Project management, Everyday management actions / decisions / reports / team plans etc) Monitoring and reviewing Risk Champions, (Council Governance eg elected members briefings, audit etc)

What could happen if we don’t manage our risks effectively in CYPS ? High profile case failure Adverse inspection results / prosecution Unfavourable press Financial implications Reputational damage To name but a few !!

JCAD Risk Management System Risk Description / Overview

JCAD Risk Management System Risk Control measures

Risks that CYPS currently have on the JCad system include: Sustaining improvement post removal of notice to improve. Budget and resources. Schools collaboration. Academies, free schools and other provision. ICT infrastructure. Safeguarding and Corporate parenting. Partnerships and governance. Customer Service. Learning. Children’s Workforce. Children’s Board. Compliance with legislation. Machinery of Government. Delivery of Children and Young People’s Plan.

Governance of Risk Management In CYPS Corporate Governance is: The system by which public bodies direct and control their functions and relate to their communities. In other words: The way in which we manage our business, determine strategy and prioritise and go about achieving those priorities. The fundamental principles are openness, integrity and accountability.

Governance of Risk Management In CYPS Risk owners and action managers review their risks and mitigations using the JCad system with the Risk Champion. Risk management activity is reported corporately to SLT and Cabinet quarterly. Risk management is reported within CYPS quarterly in forums such as DLT, Cabinet member and advisors, scrutiny and Children’s Board. Risk management is subject to internal / external audit annually.

In summary: RISK MANAGEMENT NEEDS TO BECOME A STYLE OF THOUGHT, AND SHOULD DEFINITELY NOT BE A MERE PAPER CHASE ……….

And finally …………..